Cost Behavior The way in which total cost behaves, or changes, when some measure
of activity changes. Activities that cause total cost to change are referred to as Cost
Costs that change in total in direct proporti
Contracts Less Than One Year
Contract that cannot be performed within one year
1. Year runs from date of agreement, not date performance is to begin.
2. Writing not required if contract could possibly be performed within one year,
even if thats not likely
Express and Implied Contracts
Express: the two parties to the contract explicitly state all of the important terms
of their agreement.
Implied: the words and conduct of the parties indicate that the parties intended to
make an agreement.
- Personnel m
Alternative Approach to Calculating the Contribution Margin:
An alternative approach is to calculate the change in contribution margin and fixed costs
that will result from dropping the Studio model, as follows:
Change in Contribution Margin
A. Definition - A promise that the law will enforce.
Bilateral and Unilateral Contracts
Bilateral: both parties make a promise (to do something) to each other.
Unilateral: one party makes a promise to the other that the other party can accep
An action that is legally required or constitutes the partys obligations under an
existing contract is not valid consideration.
Ex - Police officer not entitled to reward for capturing criminal.
- Hamer v. Sidway 1891- Promise typical
Introduction to Contracts
A. Contracts exist to make business matters more predictable.
B. Elements of a contract
1. Agreement - One party must make a valid offer, and the other party must accept
2. Consideration - There has to be barg
A. Statute of Frauds requires writing, signed by defendant, for certain contracts:
2. Contract not capable of performance within one year
3. Promise to pay the debt of another
4. Promises made by the executor of an estate
The Appellate court
The Appellate Court may do a couple of different things at the conclusion of
ii reverse and remand
Different Types of opinions
iii. Concurring writer agrees with majority but
1. Whatever the sovereign (federal or state) declares to be law is law.
2. If you disagree with law, obey it but work within system to change it.
1. Law derives its legitimacy by following standards and rules that have